Government has recognised the value of decentralised energy and has clear commitments to growing the industry in the years ahead.
Through our work with Government and other key bodies, the Association for Decentralised Energy provides an influential voice for its members.
We are the leading decentralised energy advocate. We are shaping the debate and influencing policy around the UK's transition to a more cost effective, efficient and user-led energy system.
2019's policy achievements
- Safeguarded the reputation of the sector in the demand side response (DSR) market, estimated at 25% of total sector value, by launching FlexAssure, the only code of practice and compliance scheme for DSR
- Supported progress towards a £22bn heat network market through effective regulation- emphasising the importance of balancing consumer protection with reducing investment risk. Achieved via intensive work with the Scottish Government and the UK Government as they develop legislation.
- Protected members' Capacity Market (CM) revenues from proposals to de-rate distribution connected assets that could have strongly reduced the income decentralised assets could earn, and through ensuring that reform to the CM will consider how decentralised assets can participate more easily, including non-exporting CHP.
- Enhanced DSR’s ability to participate in National Balancing Services by securing significant improvements to the RIIO-2 2021-2023 business plan for DSR, including clear commitment to increasing and reporting on competitive procurement of balancing services; with a target of 90% by 2022. Won progress towards automated dispatch and a commitment to procure frequency response at day-ahead from early 2021/22.
- Increased pressure for greater policy action by presenting evidence and research on the need for stronger action on energy efficiency policy to the Business, Energy and Industrial Strategy (BEIS) Select Committee.
- Delivered research proposals and strategic partnerships relevant to member priorities, including finance, retrofit standards and MEES in the domestic sector and the decarbonisation of CHP.
Industrial and commercial CHP
- Advocated for the reinstatement of the ~£1bn/year Capacity Market through our representation to the European Commission and supporting ADE members through its suspension, facilitating workshops with BEIS and ongoing updates.
- Keeping members' concerns on the agenda, by championing positive reforms to connections and forward-looking charges for decentralised energy, within Ofgem's ongoing reform of the same.
- Made advances on full access for members to the £350m/year Balancing Mechanism (BM) and TERRE through appropriate metering and settlement routes, by supporting strategic code modifications.
- Secured full implementation of a route for members to influence the rules of the Balancing and Settlement Code, which is crucial to facilitating innovative business models and customer offerings.
- Supported BEIS to develop understanding of the system benefits of longer Capacity Market contracts for new DSR, a fundamental first step in winning this priority
- Secured changes to the testing regime for frequency response, as explicitly cited in the ESO’s 2019 Reserve and Roadmap
- Brought together 100 industry participants and held the first ever ADE conference on energy efficiency with CMS McKenna, raising awareness of the sector's policy priorities.
- Set out ADE members' priorities for the £315m Industrial Energy Transformation Fund to Government, through meetings between BEIS and ADE members, written responses and ongoing informal engagement.
- Supported Government to develop policy on performance-based building monitoring, through hosting workshops with Government and stakeholders and participation in invite-only workshops with BEIS.
- Helped ensure that energy efficiency measures installed through the £640m ECO scheme were delivered with appropriate consumer protection
- Successfully worked with Scottish Government to bring forward a Heat Networks Bill in 2020, with the explicit aim to support market growth and reduce investment risk, leveraging our strong relationship with key civil servants and politicians.
- Catalysed a step change in heat networks policy by building the evidence base for the essential role of zoning. Led by developing the first detailed policy proposals for introducing heat network zones, including the use of exclusive concessions, connection compulsion and statutory undertaker rights. Zoning would allow heat networks to deploy in the right areas now - without having to wait for less established approaches such as hydrogen to be ready.
- Supported the Heat Network Investment Project fund, hosting four workshops and acting as the conduit between delivery partners to understand lessons learned from earlier rounds.